- USD/CAD rose to 1.2823 early in the US session.
- US Dollar Index trades above 90.50 ahead of FOMC.
- WTI rebounds above $53 after EIA’s inventory report
USD/CAD extended gains in the US session, rising to a more than two week high 1.2843. As crude oil prices rebound over the past few hours, the commodity-sensitive CAD showed some resilience against the USD. The pair eased back below 1.2800. Focus shifts to FOMC
A sharp selloff in equities on Wall Street boosted demand for the safe haven US Dollar. Currently the US Dollar Index trades up 0.5%, whilst the S&P 500 Index is losing 1.32%.
Attention now turns to the Fed’s monetary policy announcement.US Durable Goods Orders in December increased by 0.2%month on month missing forecasts of 0.9%. Although the market shrugged this off.
The US Energy Information’ (EIA) weekly inventory report revealed that the US crude oil stocks dropped by nearly 10 million barrels last week. West Texas Intermediate (WTI) pared earlier losses and trades up 0.8% at $53.15.